Many people have been in the cryptocurrency space for years, but in the end, they quietly leave, not because they missed the bull market, but because they succumbed to the most basic mistakes.
I always feel that the dumbest way to trade cryptocurrencies often turns out to be the most effective.
But this path is too slow, too tedious, and the vast majority of people cannot stick with it. Because they always fall into these three major "common problems":
First, chasing highs and selling lows. They rush in as soon as they see a coin rising, fantasizing that it will continue to soar, only to buy at a high point, panic when it falls, and miss the rebound. Only those who can get used to buying during downturns and selling at peaks can truly benefit from the cycle.
Second, heavily betting on direction. The direction is right, but after the main players shake the market a few times, they are swept out. It’s not due to a wrong judgment, but rather not being able to endure.
Third, emotional full positions. They go all-in in excitement, losing flexibility in adjusting their positions. Even if they have the right view, they can’t move their funds, and when an opportunity arises, they can only feel anxious.
In the end, in the cryptocurrency space, it’s not the market that loses, but the habits.
I have summarized a set of short-term "six-character formula". The reasoning is simple, yet it is easily overlooked:
High-level consolidation is not over, new highs are often yet to come; low-level fluctuations are hard to stop and may probe lower again. Do not act until the market changes.
Stay put during sideways movement, absolutely do not enter the market. Most people die in fluctuations.
Buy when the daily close is negative, sell when it’s positive. Follow market sentiment, it beats subjective judgment.
Slow declines are hard to bounce back, rapid declines are easy to reverse. Only by understanding the rhythm can one seize opportunities.
Pyramid building for positions, entering the market in batches, always leave some bullets.
After big rises and falls, there must be consolidation, and after consolidation, there will definitely be a change in the market. Don’t bet at extreme positions; wait for signals to act.
The market is not lacking in opportunities; what it lacks are those who can endure, can wait, and can survive. You think experts rely on luck, but in fact, they take the "dumb method" to the extreme.